Syniverse Announces Third Quarter and Fiscal Year to Date 2021 Financial Results
- Third Quarter Revenue of
- Fiscal Year to Date Revenue of
- Third Quarter Adjusted EBITDA of
- Strong 2021 Revenue and Adjusted EBITDA targets
- Conference call at
“These are exciting times at Syniverse. During the quarter our secular growth from messaging and 5G gained momentum and we entered into a business combination agreement with
Davies continued, “In the third quarter we saw strong revenue trends across both of our businesses. Revenue growth accelerated in our Enterprise business, led by Wholesale A2P messaging and our retail CPaaS services, and our Carrier business saw its second consecutive quarter of revenue growth for continuing products. Going forward, we expect an even greater future contribution from 5G-driven demand by our Carrier customers. Our outlook remains positive."
Fiscal 2021 Business Outlook
In accordance with a strong outlook for the remainder of the fiscal year, Syniverse expects to exceed its prior full year 2021 revenue target of
Commercial Highlights
- Recognized by Kaleido Intelligence as the leading vendor to enable 5G roaming for mobile operators;
-
Launched
WhatsApp for businesses on the Syniverse CPaaS Concierge offering; - Joined the Adobe accelerator partner program;
- Reached agreement with Tier One North American Operator to launch Syniverse’s “Evolved Mobility” 3G to VoLTE roaming solution;
- Signed agreements with a worldwide OEM and an information solution and software company to resell Syniverse’s Private Networks solution suite;
- Increased customers under contract for Syniverse’s Blockchain-enabled Billing and Clearing Evolution (BCE) solution.
Third Quarter Financial Highlights
-
Revenue grew
30% to$207.9 million $160.0 million -
Enterprise revenues accounted for
49% of total revenue in the third quarter of 2021 compared to31% of total revenue during the comparable quarter in 2020.
-
Direct Margin grew
6% to$114.8 million $108.3 million -
Adjusted EBITDA grew
20% to$60.5 million $50.5 million -
Free Cash Flow improved
$6.6 million $4.4 million $11.1 million
Revenues
Revenues increased
Revenues from Enterprise services increased
Revenues from Carrier services decreased
“CDMA and Legacy revenues” refer to revenues for end-of-life products driven by legacy protocols and technologies that are in the stage of sunset and forecasted to decrease substantially as a result.
Direct margin
Direct margin increased
Enterprise direct margin increased
Carrier direct margin decreased
Please see the table on page 14 for a reconciliation from loss before provision for income taxes to Direct Margin.
Adjusted EBITDA
Adjusted EBITDA increased
Free Cash Flow
Free Cash Flow improved by
Nine Month Financial Highlights
-
Revenue grew
11% to$540.0 million $485.4 million
-
Enterprise revenues accounted for
41% of total revenue during the nine month period of 2021 compared to31% of total revenue during the comparable period in 2020.
-
Direct Margin fell
5% to$317.7 million $333.2 million -
Adjusted EBITDA grew
2% to$156.1 million $153.2 million -
Free Cash Flow grew to
$8.7 million ( during the comparable period in 2020.$14.8) million
Revenues
Revenues increased
Revenues from Enterprise increased
Revenues from Carrier services decreased
“CDMA and Legacy revenues” refer to revenues for end-of-life products driven by legacy protocols and technologies that are in the stage of sunset and forecasted to decrease substantially as a result.
Direct margin
Direct margin decreased
Enterprise direct margin for the nine months ended
Carrier direct margin for the nine months ended
Please see the table on page 14 for a reconciliation from loss before provision for income taxes to Direct Margin.
Adjusted EBITDA
Adjusted EBITDA increased
Free Cash Flow
Free Cash Flow increased
Syniverse defines Free Cash Flow as net cash provided by operating activities minus capital expenditures.
Impact of COVID-19
The COVID-19 pandemic continues to impact roaming volumes, and we expect that it may continue to impact our business. The continued impact of COVID-19 will depend significantly on the duration and potential cyclicality of the health crisis and the related public policy actions, the length and severity of the global economic slowdown and the impacts to our customers over the longer term.
Business Combination Transaction
On
Conference call
Syniverse’s Management team will hold a conference call to discuss its fiscal Q3 2021 financial and operating results with Investors and Analysts at
North American Toll Free +1 833 470 1428
North American Toll/International +1 404 975 4839
Access code: 256249
An audio replay will be available starting at
About Syniverse
Syniverse is a leading global provider of unified, mission-critical platforms enabling seamless interoperability across the mobile ecosystem. Syniverse makes global mobility work by enabling consumers and enterprises to connect, engage, and transact seamlessly and securely. Syniverse offers a premier communications platform that serves both enterprises and carriers globally and at scale. Syniverse’s proprietary software, protocols, orchestration capabilities and network assets have allowed Syniverse to address the changing needs of the mobile ecosystem for over 30 years. Syniverse continues to innovate by harnessing the potential of emerging technologies such as 5G, IoT, RCS and CPaaS for its customers.
Non-GAAP Financial Measures
In this press release, the Company includes Direct Margin, which is a measure used to evaluate the operating performance of the Company’s segments, and Adjusted EBITDA and Free Cash Flow, which are non-GAAP performance measures that the Company uses to supplement its results presented in accordance with
The Company defines and calculates Direct Margin as Revenues less direct variable costs of operations (“Direct Costs”). These Direct Costs include Message Termination (MT) fees, revenue share fees, variable data processing costs, and off-network database query charges. The Company defines and calculates Adjusted EBITDA as net loss before net Other expense, Provision for (or benefit from) income taxes, Depreciation and amortization expense, Restructuring expense, Non-cash stock-based compensation, Other expenses, Consulting fee and related expense. The Company defines and calculates Free Cash Flow as
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates and projections of the businesses of MBAC or Syniverse may differ from their actual results and consequently you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “would,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of MBAC and Syniverse and anticipated financial impacts of the proposed transaction, the satisfaction of the closing conditions to the proposed transaction and the timing of the completion of the proposed transaction.
These forward-looking statements are not guarantees of future performance, conditions, or results, and involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of the control of MBAC and Syniverse and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability to complete the transactions contemplated by the agreement and plan of merger with respect to the proposed transaction (the “Merger Agreement”), including due to failure to obtain approval of the stockholders of MBAC or other conditions to closing in the Merger Agreement; (2) the outcome of any legal proceedings that may be instituted against the parties following announcement of the Merger Agreement and the proposed transactions contemplated thereby; (3) the ability to recognize the anticipated benefits of the proposed business combination, which may be affected by, among other things, competition, the ability of the post-combination company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (4) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement and the proposed transactions contemplated thereby; (5) risks related to the uncertainty of the projected financial information with respect to Syniverse; (6) the inability to obtain or maintain the listing of the post-acquisition company’s Class A Stock and public warrants on the NYSE following the proposed business combination; (7) risks related to the post-combination company’s ability to raise financing in the future; (8) the post-combination company’s success in retaining or recruiting, or changes required in, our officers, key employees or directors following the proposed business combination; (9) our directors and officers potentially having conflicts of interest with our business or in approving the proposed business combination; (10) intense competition and competitive pressures from other companies in the industry in which the post-combination company will operate; (11) the business, operations and financial performance of Syniverse, including market conditions and global and economic factors beyond Syniverse’s control; (12) the effect of legal, tax and regulatory changes; (13) the receipt by MBAC or Syniverse of an unsolicited offer from another party for an alternative business transaction that could interfere with the proposed business combination; (14) the risk that the proposed business combination disrupts current plans and operations of MBAC or Syniverse as a result of the announcement and consummation of the transactions described herein; (15) costs related to the proposed business combination; (16) changes in applicable laws or regulations; (17) the possibility that MBAC or Syniverse may be adversely affected by other economic, business, and/or competitive factors; (18) the amount of redemption requests made by MBAC’s public stockholders; (19) the impact of the continuing COVID-19 pandemic on MBAC, Syniverse and Syniverse’s projected results of operations, financial performance or other financial metrics or on any of the foregoing risks; and (20) other risks and uncertainties disclosed in MBAC’s preliminary proxy statement, including those under “Risk Factors,” and other documents filed or to be filed with the
MBAC and Syniverse caution that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. Syniverse and MBAC do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based.
Information About the Proposed Business Merger and Where to Find It
In connection with the proposed transaction, MBAC has filed a preliminary proxy statement and plans to file a definitive proxy statement with the
Participants in the Solicitation
MBAC and its directors and executive officers may be deemed participants in the solicitation of proxies of MBAC’s stockholders with respect to the proposed transaction. A list of those directors and executive officers and a description of their interests in MBAC will be filed in the proxy statement for the proposed transaction and available at www.sec.gov. Additional information regarding the interests of such participants will be contained in the proxy statement for the proposed transaction when available.
Syniverse and its directors and executive officers may also be deemed to be participants in the solicitation of proxies from the stockholders of MBAC in connection with the proposed transaction. A list of the names of such directors and executive officers and information regarding their interests in the proposed transaction will be included in the proxy statement for the proposed business combination.
No Offer or Solicitation
This press release shall not constitute a solicitation of a proxy, consent, or authorization with respect to any securities or in respect of the proposed transaction. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of section 10 of the Securities Act of 1933, as amended.
|
||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(IN THOUSANDS) |
||||||||||||||||
|
|
Three Months Ended |
Nine Months Ended |
|||||||||||||
|
|
2021 |
2020 |
2021 |
2020 |
|||||||||||
Revenues |
|
$ |
207,946 |
|
$ |
160,041 |
|
$ |
540,049 |
|
$ |
485,437 |
|
|||
Costs and expenses: |
|
|
|
|
|
|||||||||||
Cost of operations (excluding depreciation and amortization
|
|
|
120,628 |
|
|
81,545 |
|
|
305,168 |
|
|
243,621 |
|
|||
Sales and marketing |
|
|
12,837 |
|
|
14,860 |
|
|
37,995 |
|
|
46,827 |
|
|||
General and administrative |
|
|
19,243 |
|
|
25,391 |
|
|
66,072 |
|
|
70,622 |
|
|||
Depreciation and amortization |
|
|
18,130 |
|
|
28,549 |
|
|
60,620 |
|
|
83,752 |
|
|||
Restructuring expense |
|
|
1,562 |
|
|
15,887 |
|
|
3,920 |
|
|
18,571 |
|
|||
|
|
|
172,400 |
|
|
166,232 |
|
|
473,775 |
|
|
463,393 |
|
|||
Operating income (loss) |
|
|
35,546 |
|
|
(6,191 |
) |
|
66,274 |
|
|
22,044 |
|
|||
Other (expense) income, net: |
|
|
|
|
|
|||||||||||
Interest expense |
|
|
(40,759 |
) |
|
(42,658 |
) |
|
(121,694 |
) |
|
(128,654 |
) |
|||
Equity income (loss) in investees |
|
|
867 |
|
|
(619 |
) |
|
(325 |
) |
|
(1,003 |
) |
|||
Other, net |
|
|
3,008 |
|
|
(5,472 |
) |
|
(661 |
) |
|
(3,854 |
) |
|||
|
|
|
(36,884 |
) |
|
(48,749 |
) |
|
(122,680 |
) |
|
(133,511 |
) |
|||
Loss before provision for income taxes |
|
|
(1,338 |
) |
|
(54,940 |
) |
|
(56,406 |
) |
|
(111,467 |
) |
|||
Provision for income taxes |
|
|
2,452 |
|
|
960 |
|
|
5,033 |
|
|
7,375 |
|
|||
Net loss |
|
|
(3,790 |
) |
|
(55,900 |
) |
|
(61,439 |
) |
|
(118,842 |
) |
|||
Net income attributable to noncontrolling interest |
|
|
1,692 |
|
|
204 |
|
|
2,242 |
|
|
149 |
|
|||
Net loss attributable to |
|
$ |
(5,482 |
) |
$ |
(56,104 |
) |
$ |
(63,681 |
) |
$ |
(118,991 |
) |
|||
|
||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS |
||||||||||||||||
(IN THOUSANDS) |
||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net loss |
|
$ |
(3,790) |
|
|
$ |
(55,900) |
|
|
$ |
(61,439) |
|
|
$ |
(118,842) |
|
Other comprehensive income (loss), net of tax (1): |
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
(14,046) |
|
|
27,751 |
|
|
(4,098) |
|
|
25,618 |
|
||||
Changes related to cash flow derivative hedges |
|
5,358 |
|
|
6,502 |
|
|
15,668 |
|
|
(1,902) |
|
||||
Changes in unrecognized pension cost |
|
32 |
|
|
27 |
|
|
95 |
|
|
(4,874) |
|
||||
Total Other comprehensive (loss) income |
|
(8,656) |
|
|
34,280 |
|
|
11,665 |
|
|
18,842 |
|
||||
Total Comprehensive loss |
|
(12,446) |
|
|
(21,620) |
|
|
(49,774) |
|
|
(100,000) |
|
||||
Less: comprehensive income attributable to noncontrolling interest |
|
1,632 |
|
|
341 |
|
|
2,328 |
|
91 |
||||||
Comprehensive loss attributable to |
|
$ |
(14,078) |
|
|
$ |
(21,961) |
|
|
$ |
(52,102) |
|
|
$ |
(100,091) |
|
(1) There was no income tax provision or benefit on the components of other comprehensive income (loss) for the three and nine months ended
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(IN THOUSANDS) |
|||||||
|
Nine Months Ended |
||||||
|
2021 |
|
2020 |
||||
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(61,439) |
|
|
$ |
(118,842) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
60,620 |
|
|
83,752 |
|
||
Amortization of original issue discount and deferred financing costs |
6,686 |
|
|
6,283 |
|
||
Allowance for credit memos and uncollectible accounts |
1,003 |
|
|
3,228 |
|
||
Deferred income tax expense |
4,022 |
|
|
2,486 |
|
||
Stock-based compensation |
6,979 |
|
|
12,536 |
|
||
Unrealized foreign currency transaction (gain) loss |
(332) |
|
|
3,938 |
|
||
Other, net |
11,341 |
|
|
6,476 |
|
||
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
(11,033) |
|
|
20,419 |
|
||
Income tax receivable or payable |
(1,395) |
|
|
(749) |
|
||
Prepaid and other current assets |
(21,693) |
|
|
(2,673) |
|
||
Accounts payable |
23,502 |
|
|
4,710 |
|
||
Accrued liabilities and deferred revenues |
21,260 |
|
|
8,260 |
|
||
Other assets and other long-term liabilities |
(1,988) |
|
|
(2,189) |
|
||
Net cash provided by operating activities |
37,533 |
|
|
27,635 |
|
||
Cash flows from investing activities |
|
|
|
||||
Capital expenditures |
(28,815) |
|
|
(42,401) |
|
||
Net cash used in investing activities |
(28,815) |
|
|
(42,401) |
|
||
Cash flows from financing activities |
|
|
|
||||
Proceeds from Revolving Credit Facility |
— |
|
|
85,600 |
|
||
Principal payments on Revolving Credit Facility |
— |
|
|
(25,000) |
|
||
Principal payments on long-term debt |
(12,765) |
|
|
(12,765) |
|
||
Payments on capital lease obligations and software financing arrangements |
(5,228) |
|
|
(7,036) |
|
||
Purchases of treasury shares for |
(1,015) |
|
|
(2,627) |
|
||
Other |
— |
|
|
(2,483) |
|
||
Net cash (used in) provided by financing activities |
(19,008) |
|
|
35,689 |
|
||
Effect of exchange rate changes on cash |
142 |
|
|
(725) |
|
||
Net (decrease) increase in cash, cash equivalents and restricted cash |
(10,148) |
|
|
20,198 |
|
||
Cash, cash equivalents and restricted cash at beginning of period |
89,500 |
|
|
48,647 |
|
||
Cash, cash equivalents and restricted cash at end of period |
$ |
79,352 |
|
|
$ |
68,845 |
|
|
|
|
|
||||
Supplemental Disclosure of Cash Flow Information |
|
|
|
||||
Non-Cash Financing and Investing Transactions: |
|
|
|
||||
Assets acquired under capital leases and software financing arrangements |
$ |
576 |
|
|
$ |
18,993 |
|
Cash paid in the period for: |
|
|
|
||||
Interest |
$ |
112,096 |
|
|
$ |
109,518 |
|
Income taxes |
$ |
2,428 |
|
|
$ |
5,649 |
|
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(IN THOUSANDS) |
|||||||
|
|
|
|
||||
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
77,800 |
|
|
$ |
88,493 |
|
Accounts receivable, net of allowances of |
134,004 |
|
|
124,219 |
|
||
Income taxes receivable |
5,754 |
|
|
6,376 |
|
||
Prepaid and other current assets |
34,460 |
|
|
21,039 |
|
||
Total current assets |
252,018 |
|
|
240,127 |
|
||
Property and equipment, net |
37,738 |
|
|
47,459 |
|
||
Capitalized software, net |
73,299 |
|
|
83,512 |
|
||
|
2,306,272 |
|
|
2,310,145 |
|
||
Identifiable intangibles, net |
112,230 |
|
|
125,004 |
|
||
Deferred tax assets |
2,096 |
|
|
2,108 |
|
||
Investment in unconsolidated subsidiaries |
35,013 |
|
|
35,338 |
|
||
Other assets |
7,885 |
|
|
10,701 |
|
||
Total assets |
$ |
2,826,551 |
|
|
$ |
2,854,394 |
|
LIABILITIES AND STOCKHOLDER EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
67,972 |
|
|
$ |
44,835 |
|
Accrued liabilities |
141,423 |
|
|
119,545 |
|
||
Income taxes payable |
1,409 |
|
|
3,435 |
|
||
Current portion of long-term debt, net of original issue discount and deferred financing costs |
16,888 |
|
|
16,830 |
|
||
Deferred revenues |
4,774 |
|
|
5,739 |
|
||
Total current liabilities |
232,466 |
|
|
190,384 |
|
||
Long-term debt, net of original issue discount and deferred financing costs |
1,919,325 |
|
|
1,925,463 |
|
||
Deferred tax liabilities |
83,500 |
|
|
81,379 |
|
||
Other long-term liabilities |
56,216 |
|
|
78,314 |
|
||
Total liabilities |
2,291,507 |
|
|
2,275,540 |
|
||
Commitments and contingencies (Note 10) |
|
|
|
||||
Stockholder equity: |
|
|
|
||||
Common stock |
— |
|
|
— |
|
||
Additional paid-in capital |
1,309,874 |
|
|
1,303,910 |
|
||
Accumulated deficit |
(683,824) |
|
|
(620,143) |
|
||
Accumulated other comprehensive loss |
(102,267) |
|
|
(113,846) |
|
||
|
523,783 |
|
|
569,921 |
|
||
Noncontrolling interest |
11,261 |
|
|
8,933 |
|
||
Total stockholder equity |
535,044 |
|
|
578,854 |
|
||
Total liabilities and stockholder equity |
$ |
2,826,551 |
|
|
$ |
2,854,394 |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Reconciliation to Adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(3,790) |
|
|
$ |
(55,900) |
|
|
$ |
(61,439) |
|
|
$ |
(118,842) |
|
Other expense, net |
36,884 |
|
|
48,749 |
|
|
122,680 |
|
|
133,511 |
|
||||
Provision for income taxes |
2,452 |
|
|
960 |
|
|
5,033 |
|
|
7,375 |
|
||||
Depreciation and amortization |
18,130 |
|
|
28,549 |
|
|
60,620 |
|
|
83,752 |
|
||||
Restructuring expense (a) |
1,562 |
|
|
15,887 |
|
|
3,920 |
|
|
18,571 |
|
||||
Non-cash stock-based compensation (b) |
2,583 |
|
|
7,186 |
|
|
6,979 |
|
|
12,536 |
|
||||
Other expenses (c) |
1,965 |
|
|
4,322 |
|
|
16,090 |
|
|
13,981 |
|
||||
Consulting fee and related expenses (d) |
750 |
|
|
780 |
|
|
2,264 |
|
|
2,358 |
|
||||
Adjusted EBITDA |
$ |
60,536 |
|
|
$ |
50,533 |
|
|
$ |
156,147 |
|
|
$ |
153,242 |
|
(a) Reflects restructuring expense which represents costs related to certain exit activities such as severance costs, facility exit costs and contract termination costs associated with a restructuring plan.
(b) Reflects non-cash expenses related to equity compensation awards.
(c) Reflects items associated with certain advisory and professional services related to strategic initiatives and otherwise, employee costs and data center migration costs.
(d) Reflects management fees paid to Carlyle and related expenses pursuant to a consulting agreement with Carlyle.
|
Nine Months Ended |
||||||
(in thousands) |
2021 |
|
2020 |
||||
Reconciliation to Free Cash Flow |
|
|
|
||||
Net cash provided by operating activities |
$ |
37,533 |
|
|
$ |
27,635 |
|
Capital expenditures |
(28,815) |
|
|
(42,401) |
|
||
Free Cash Flow |
$ |
8,718 |
|
|
$ |
(14,766) |
|
For the three and nine months ended
The following table presents revenues by segment:
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Carrier |
$ |
105,306 |
|
|
$ |
110,199 |
|
|
$ |
318,059 |
|
|
$ |
335,577 |
|
Enterprise |
102,640 |
|
|
49,842 |
|
|
221,990 |
|
|
149,860 |
|
||||
Revenues |
$ |
207,946 |
|
|
$ |
160,041 |
|
|
$ |
540,049 |
|
|
$ |
485,437 |
|
The following table presents direct margin by segment:
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Carrier direct margin |
$ |
80,350 |
|
|
$ |
91,510 |
|
|
$ |
244,650 |
|
|
$ |
284,640 |
|
Enterprise direct margin |
34,468 |
|
|
16,765 |
|
|
73,083 |
|
|
48,600 |
|
||||
Total direct margin |
$ |
114,818 |
|
|
$ |
108,275 |
|
|
$ |
317,733 |
|
|
$ |
333,240 |
|
The following table provides a reconciliation of total direct margin to loss before provision for income taxes:
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenues |
|
$ |
207,946 |
|
|
$ |
160,041 |
|
|
$ |
540,049 |
|
|
$ |
485,437 |
|
Variable costs of operations |
|
93,128 |
|
|
51,766 |
|
|
222,316 |
|
|
152,197 |
|
||||
Direct margin |
|
114,818 |
|
|
108,275 |
|
|
317,733 |
|
|
333,240 |
|
||||
Fixed costs of operations |
|
27,500 |
|
|
29,779 |
|
|
82,852 |
|
|
91,424 |
|
||||
Sales and marketing |
|
12,837 |
|
|
14,860 |
|
|
37,995 |
|
|
46,827 |
|
||||
General and administrative |
|
19,243 |
|
|
25,391 |
|
|
66,072 |
|
|
70,622 |
|
||||
Depreciation and amortization |
|
18,130 |
|
|
28,549 |
|
|
60,620 |
|
|
83,752 |
|
||||
Restructuring expense |
|
1,562 |
|
|
15,887 |
|
|
3,920 |
|
|
18,571 |
|
||||
Operating income |
|
35,546 |
|
|
(6,191) |
|
|
66,274 |
|
|
22,044 |
|
||||
Other expense, net |
|
(36,884) |
|
|
(48,749) |
|
|
(122,680) |
|
|
(133,511) |
|
||||
Loss before provision for income taxes |
|
$ |
(1,338) |
|
|
$ |
(54,940) |
|
|
$ |
(56,406) |
|
|
$ |
(111,467) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20211008005181/en/
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